Korn Ferry Announces First Quarter Fiscal 2027 Results of Operations

Korn Ferry Announces First Quarter Fiscal 2027 Results of Operations

Highlights

* Korn Ferry reports Q1 FY'27 fee revenue of $756.5 million, an increase of 7% year-over-year at both actual and constant currency.

• This marks our sixth consecutive quarter of top line growth.

* Fee revenue grew in all regions year-over-year, led by double digit growth in Search and Workforce Solutions of 10% and 11%, respectively.

* Estimated remaining fees under existing contracts at the end of the first quarter were $1.9 billion, up 14% year-over-year.

* Net income attributable to Korn Ferry was $69.0 million, an increase of 4% year-over-year, with a margin of 9.1%.

* Adjusted EBITDA was $128.2 million, an increase of 7% year-over-year, with a margin of 17%.

* Diluted and adjusted diluted earnings per share were $1.32 and $1.43 in Q1 FY'27, up 5% and 9% year-over-year, respectively.

Korn Ferry (NYSE: KFY), a global consulting firm, today announced first quarter fee revenue of $756.5 million. In addition, first quarter diluted earnings per share was $1.32 and adjusted diluted earnings per share was $1.43.

“I am very pleased with our quarterly performance. This marks our sixth consecutive quarter of top-line growth, demonstrating the momentum and durability of our business, as well as the sustaining value we are creating for our clients,” said Gary D. Burnison, CEO, Korn Ferry. “With AMS now part of Korn Ferry, we have brought together two iconic brands to create a global leader in talent and organizational consulting. AMS is a world-class firm that complements and meaningfully expands our Workforce Solutions and propels our We Are Korn Ferry strategy—to be the world’s conductor of talent and organizational orchestration.

“AMS brings profound operational capability, delivering technology-enabled talent solutions at scale, supported by long-term contracted client relationships. And at the heart of this combination is a belief that defines Korn Ferry: people are the catalyst for organizational success. I could not be more excited about our future.”

Selected Financial Results (dollars in millions, except per share amounts) ((a))

Adjusted Results (f):First Quarter FY’27FY’26 Adjusted EBITDA$ 128.2$ 120.4 Adjusted EBITDA margin17.0 %17.0 % Adjusted net income attributable to Korn Ferry (g)$ 74.6$ 69.2 Adjusted basic earnings per share (g)$ 1.46$ 1.33 Adjusted diluted earnings per share (g)$ 1.43$ 1.31

____________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Estimated value of an engagement awarded in the period evidenced by a signed contract. (d) New business divided by average number of fee earners in the period annualized. (e) Represents number of employees originating services. (f) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

First Quarter FY’27   FY’26 Integration/acquisition costs $ 7.6   $ 1.5

(g) Adjusted net income attributable to Korn Ferry, Adjusted basic earnings per share and Adjusted diluted earnings per share are non-GAAP financial measures that adjust for items in (f) and the following, as applicable (see attached reconciliations):

First Quarter FY’27   FY’26 Accelerated depreciation on digital technology platform $ —     $ 2.0 Tax effect on the adjusted items $ (1.9 )   $ (0.9 )

The Company reported fee revenue in Q1 FY'27 of $756.5 million, an increase of 7% year-over-year at both actual and constant currency. Fee revenue grew in all Regions year-over-year, led by double digit growth in Search and Workforce Solutions.

Net income attributable to Korn Ferry was $69.0 million with a margin of 9.1% in Q1 FY'27, compared to net income attributable to Korn Ferry of $66.6 million with a margin of 9.4% in Q1 FY'26. Adjusted EBITDA was $128.2 million in Q1 FY'27 compared to $120.4 million in Q1 FY'26. Adjusted EBITDA margin in the quarter was 17.0%, flat year-over-year. Net income attributable to Korn Ferry and Adjusted EBITDA increased primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and general and administrative expenses.

Results by Region

Selected Americas Data

(dollars in millions) ((a)) First Quarter FY’27FY’26 Fee revenue$ 442.1$ 404.1 Total revenue$ 447.6$ 408.5 Estimated remaining fees under existing contracts (b)$ 1,042.1$ 875.1 New business (c)$ 465.7$ 404.1 Fee earner new business productivity (d) - in thousands$ 1,920$ 1,630 Ending number of fee earners (e)971973 Adjusted Results (f): First Quarter FY’27   FY’26 Adjusted EBITDA $ 116.4     $ 100.7 Adjusted EBITDA margin   26.3 %     24.9 % ___________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Estimated value of an engagement awarded in the period evidenced by a signed contract. (d) New business divided by average number of fee earners in the period annualized. (e) Represents number of employees originating services. (f) Adjusted results exclude the following:

First Quarter FY’27   FY’26 Integration/acquisition costs $ —   $ 0.7

Fee revenue was $442.1 million in Q1 FY'27 compared to $404.1 million in Q1 FY'26, an increase of $38.0 million or 9% year-over-year at both actual and constant currency. The fee revenue increase was primarily driven by increases of 14% in both Search and Workforce Solutions.

Adjusted EBITDA was $116.4 million in Q1 FY'27 compared to $100.7 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 140bps to 26.3%. Adjusted EBITDA increased primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.

Selected EMEA Data

(dollars in millions) ((a)) First Quarter FY’27FY’26 Fee revenue$ 227.7$ 219.0 Total revenue$ 229.6$ 220.9 Estimated remaining fees under existing contracts (b)$ 646.9$ 572.5 New business (c)$ 251.7$ 227.3 Fee earner new business productivity (d) - in thousands$ 1,790$ 1,580 Ending number of fee earners (e)556578 Adjusted Results (f): First Quarter FY’27   FY’26 Adjusted EBITDA $ 37.3     $ 35.7 Adjusted EBITDA margin   16.4 %     16.3 % ___________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Estimated value of an engagement awarded in the period evidenced by a signed contract. (d) New business divided by average number of fee earners in the period annualized. (e) Represents number of employees originating services. (f) Adjusted results exclude the following:

First Quarter FY’27   FY’26 Integration/acquisition costs $ —   $ 0.8

Fee revenue was $227.7 million in Q1 FY'27 compared to $219.0 million in Q1 FY'26, an increase of $8.7 million or 4% year-over-year at both actual and constant currency. Fee revenue increased in all Solution groups, led by Workforce Solutions and Talent & Organizational Solutions up 8% and 4%, respectively.

Adjusted EBITDA was $37.3 million in Q1 FY'27, compared to $35.7 million in the year-ago quarter. Adjusted EBITDA increased primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.

Selected APAC Data

(dollars in millions) ((a)) First Quarter FY’27FY’26 Fee revenue$ 86.7$ 85.5 Total revenue$ 87.5$ 86.2 Estimated remaining fees under existing contracts (b)$ 226.0$ 226.6 New business (c)$ 114.9$ 110.7 Fee earner new business productivity (d) - in thousands$ 1,620$ 1,570 Ending number of fee earners (e)284279 Adjusted Results: First Quarter FY’27   FY’26 Adjusted EBITDA $ 19.2     $ 19.8 Adjusted EBITDA margin   22.2 %     23.1 % ___________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Estimated value of an engagement awarded in the period evidenced by a signed contract. (d) New business divided by average number of fee earners in the period annualized. (e) Represents number of employees originating services.

Fee revenue was $86.7 million in Q1 FY'27 compared to $85.5 million in Q1 FY'26, an increase of $1.2 million or 1% (up 2% at constant currency). Fee revenue increased primarily driven by a 7% increase in Search, offset by a decline in the other Solution Groups.

Adjusted EBITDA was $19.2 million in Q1 FY'27 compared to $19.8 million in the year-ago quarter.

Outlook

Assuming no further changes in worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates, and including the addition of AMS for September and October, on a consolidated basis:

* Q2 FY’27 fee revenue is expected to be in the range of $860 million and $878 million;

• Q2 FY'27 adjusted EBITDA margin is expected to range from 16.8% to 17.2%; and

* Q2 FY’27 adjusted diluted earnings per share is expected to be in the range from $1.30 to $1.40.

Adjusted diluted earnings per share includes the net after tax impact of two months of incremental intangible asset amortization, incremental net interest expense and incremental shares issued in connection with the acquisition of AMS which closed on September 1, 2026.

Consolidated adjusted EBITDA margin and consolidated adjusted diluted earnings per share are non-GAAP financial measures. The Company is not providing an outlook for consolidated net income attributable to Korn Ferry margin or consolidated diluted earnings per share, the most directly comparable GAAP measures, or a quantitative reconciliation of those GAAP measures to the corresponding non-GAAP measures. The information necessary to present those GAAP measures on a forward-looking basis is not accessible without unreasonable efforts, because the Company is not able to estimate with reasonable certainty the integration and acquisition costs it will incur in connection with the AMS acquisition during the second quarter of fiscal 2027.

Earnings Conference Call Webcast

The earnings conference call will be held today at 12:00 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at ir.kornferry.com. We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.

About Korn Ferry

Korn Ferry is a global consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That’s why the world’s most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than.

Forward-Looking Statements

Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, expected benefits and synergies from the AMS acquisition, impact of global events on our business, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as “believes”, “expects”, “anticipates”, “goals”, “estimates”, “guidance”, “may”, “should”, “could”, “will” or “likely”, and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, trade wars, interest rates, labor market conditions, global slowdowns, or recessions, competition, geopolitical tensions, including the recent Middle East conflict, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, our ability to successfully integrate acquired businesses, including the operations and employees of AMS, our ability to recognize the anticipate benefits of the acquisition of AMS which may be affected by, among other things, competition, our ability to grow and manage growth profitably, our ability to maintain relationships with customers and suppliers and retain key employees, costs related to the AMS acquisition, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to corporate responsibility matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property, our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the use of social media platforms, the ability to effect acquisitions, resulting organizational changes, our indebtedness, and those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In particular, it includes:

* Adjusted net income attributable to Korn Ferry, adjusted to exclude accelerated depreciation on our digital technology platform and integration/acquisition costs, net of income tax effect;

* Adjusted basic and diluted earnings per share, adjusted to exclude cost associated with accelerated depreciation on our digital technology platform and integration/acquisition costs, net of income tax effect;

* Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period; and

* Consolidated Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs when applicable, and Consolidated Adjusted EBITDA margin.

This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain charges that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These charges, which are described in the footnotes in the attached reconciliations, represent 1) accelerated depreciation associated with the decision to sunset our digital technology platform and 2) costs associated with acquisitions, such as legal and professional fees, retention awards and on-going integration expenses. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company’s operating results. Management further believes that Consolidated Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making. KORN FERRY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts) Three Months Ended

KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY REPORTING SEGMENT

(dollars in thousands)

Fee revenue by Solution Group: Search$ 307,898$ 278,92410.4 % Talent & Organizational Solutions259,220259,160— % Workforce Solutions189,378170,52911.1 % Total fee revenue$ 756,496$ 708,6136.8 %

KORN FERRY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts) July 31,   April 30,

2026

2026 ((1)) (unaudited) ASSETS Cash and cash equivalents$ 800,852$ 1,095,445 Marketable securities15,43938,914 Receivables due from clients, net of allowance for doubtful accounts of615,274573,350 $44,591 and $42,527 at July 31, 2026 and April 30, 2026, respectively Income taxes and other receivables68,26575,410 Unearned compensation67,21564,421 Prepaid expenses and other assets71,92358,437 Total current assets1,638,9681,905,977 Marketable securities, non-current234,778247,132 Property and equipment, net193,676191,531 Operating lease right-of-use assets, net170,191170,986 Cash surrender value of company-owned life insurance policies, net of loans304,906289,058 Deferred income taxes118,383113,207 Goodwill945,837950,636 Intangible assets, net39,75445,858 Unearned compensation, non-current140,457118,592 Investments and other assets29,92631,799 Total assets$ 3,816,876$ 4,064,776 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable$ 50,316$ 49,682 Income taxes payable18,71819,573 Compensation and benefits payable299,408570,242 Operating lease liability, current30,62128,111 Other accrued liabilities292,154314,402 Total current liabilities691,217982,010 Deferred compensation and other retirement plans531,991510,774 Operating lease liability, non-current163,701164,899 Long-term debt398,778398,565 Deferred tax liabilities6,6075,723 Other liabilities23,30523,902 Total liabilities1,815,5992,085,873 Stockholders' equity Common stock: $0.01 par value, 150,000 shares authorized, 80,165 and 79,203276,212284,370 shares issued and 50,790 and 50,225 shares outstanding at July 31, 2026 and April 30, 2026, respectively Retained earnings1,799,8081,761,063 Accumulated other comprehensive loss, net(81,633)(72,827) Total Korn Ferry stockholders' equity1,994,3871,972,606 Noncontrolling interest6,8906,297 Total stockholders' equity2,001,2771,978,903 Total liabilities and stockholders' equity$ 3,816,876$ 4,064,776 (1) information is derived from audited financial statements included in our most recently filed Form 10-K.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands)

Explanation of Non-GAAP Adjustments (1) Depreciation and amortization includes $2.0 million of accelerated depreciation associated with the decision to sunset the digital technology platform in the three months ended July 31, 2025. (2) Costs associated with current and previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses. (3) Tax effect on the accelerated depreciation on the digital technology platform and integration/acquisition costs.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

(dollars in thousands)

(unaudited) Three Months Ended July 31, 2026   2025 Net income   Net income           Net income   Net income

attributable attributable attributable attributable

to to to to

Korn Ferry Korn Ferry Korn Ferry Korn Ferry

margin margin Consolidated         $ 68,967     9.1 %           $ 66,636     9.4 % Fee   Total   Adjusted   Adjusted   Fee   Total   Adjusted   Adjusted

revenue revenue

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